The great industry gamble: market structure dynamics as a survival contest.
Industry dynamics are studied as an endogenous tournament with infinite horizon and stochastic entry. In each period, firms' investments determine their probability of surviving into the next period. This generates a survival contest, which fuels market structure dynamics, while the evolution of mar...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 43; no. 2; pp. 348 - 368 |
|---|---|
| Autor principal: | |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Summer2012
|
| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=76917927&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 76917927 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Summer2012 vid: 43 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 76917927 10.1111/j.1756-2171.2012.00169.x ppf: 348 ppct: 20 formats: fmt: @attributes: type: P size: 593KB tig: atl: The great industry gamble: market structure dynamics as a survival contest. aug: au: Tóth, Áron affil: University of Bath; . su: Industrial organization (Economic theory) Banking industry Profit Industries Probability theory Statistical correlation sug: subj: Industrial organization (Economic theory) Banking industry Profit Other Depository Credit Intermediation Savings Institutions Commercial Banking Personal and commercial banking industry Industries Probability theory Statistical correlation ab: Industry dynamics are studied as an endogenous tournament with infinite horizon and stochastic entry. In each period, firms' investments determine their probability of surviving into the next period. This generates a survival contest, which fuels market structure dynamics, while the evolution of market structure constantly redefines the contest. More concentrated markets endogenously generate less profit, rivals that are more difficult to outlive, and more entry. The unique steady-state distribution exhibits ongoing turbulence, correlated exit and entry rates, and shakeouts. The model's predictions fit empirical findings in markets where firms trade off profits for smaller risk of failure (e.g., banking). pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
|---|